Chinese investors are pulling their money out of the US and Europe
The effects of a retreat in U.S. and European markets by Chinese investors are now being felt, and have stoked concerns of a dip in real estate prices for 2019.
During the third quarter, Chinese conglomerates sold off more than $1 billion worth of commercial real estate in the United States, while purchasing only $231 million.
The pull back follows restrictions imposed by the the Chinese government on foreign investments, and experts predict the trend will continue in 2019.
In April, Chinese conglomerate HNA Group announced plans to raise $1.5 billion for an offshore investment fund to continue purchasing as regulators in Beijing seek to constrict overseas transactions.
But in November, the company finalized a deal to sell its stake in 245 Park Avenue to SL Green Realty for $148.2 million. It also sold 1180 Sixth Avenue for $305 million in February.
The European market has also taken a hit, after Chinese investors offloaded $233.3 million worth of commercial real estate, including hotels and office buildings.